The 11-member Comprehensive and Progressive Agreement for Trans-Pacific Partnership trade pact entered into force on Sunday, creating a free trade area covering more than a tenth of the global economy.
The trade deal, signed in March, will cut tariffs on agriculture and industrial products, ease investment restrictions and enhance protection of intellectual property.
The 11 countries hope that the CPTPP will serve as a counter to growing protectionism as China and the United States engage in a trade war.
The U.S. had been a member of the original pact but Washington withdrew just days into the administration of President Donald Trump.
Australia, Canada, Japan, Mexico, New Zealand and Singapore became the first six members to ratify the pact, setting the stage for its entry into force.
Vietnam is expected to complete its domestic procedures in January.
The CPTPP accounts for 13 percent of the world’s gross domestic product and provides access to an economic bloc of 500 million people.
The participating nations will scrap tariffs on most products.
Japan, for its part, will eliminate import duties on 95 percent of items, with some key sectors such as rice and beef continuing to receive a certain level of protection.
Still, consumers will be able to buy imported beef and other food items at much cheaper prices while manufacturers can boost exports with the elimination of tariffs.
Automakers, for example, will see Canada reducing its 6.1 percent tariff on imported passenger cars to zero in five years.
Source: ANNnewsCH
